might not be an acceptable substitute for self-liq-
uidity and the presence of the line may not reduce
the issuer’s liquidity on a dollar per dollar basis.
Standard & Poor’s will evaluate lines if requested to
do so, and strong lines that more closely resemble
standby bond purchase agreements, even if they are
not part of the bond transaction, may be used to
reduce an issuer’s self liquidity.Asset-To-Debt Coverage Requirements
An issuer must ensure, on an ongoing basis, that its
available assets (whether they are cash and fixed
income investments or dedicated liquidity facilities)
are sufficient, safe, and liquid enough to meet at
least 100% of maturing CP or the full amount of a
potential VRDO tender. The 100% requirement
provides a minimum of 1x coverage of debt by
available assets and assumes assets are available in
the event of a failed remarketing or optional tender.
In cases where a combination of an issuer’s ownassets and bank liquidity facilities (provided they
are strong enough to provide support for the pro-
gram) provide liquidity support, the minimum cov-
erage requirement remains 1x.
When evaluating fixed income investments in a
portfolio, Standard & Poor’s uses different coverage
levels of different types of investments to take into
account the nature of the specific assets available
and the speed with which the assets can be liquidat-
ed without significant market losses. An issuer pro-
viding self-liquidity must indicate its willingness to
sell assets in a down market and incur a potential
loss if Standard & Poor’s is to be comfortable with
their ability to provide self-liquidity.
When an issuer chooses to use its own assets, the
amount of assets necessary to cover maturing CP or a
potential VRDO tender depends upon the asset’s
credit quality, volatility, and weighted average maturi-
ty. Generally, the lower the credit quality of the fixed
income security, the longer the weighted averageCross Sector Criteria22 Standard & Poor’s Public Finance Criteria 2007
Portfolio Surveillance Information
Recipient: Sender/Contact:
Telephone #: Liquidity provider:
Monthly Portfolio Surveillance Information Name of portfolios
Date of portfolio Market value (millions) of fixed income portion
Par/Face value (millions) of fixed income portion Total value (millions) of equity holdings and other assets
Monthly total return Weighted average maturity
Effective duration Net asset value (per share if available)Credit Quality—Standard & Poor’s ratings (%) (Please indicate if other NRSRO ratings are used)
AAA BB
AA CCC
A N.R
BBBPortfolio Breakdown (%) of the Fixed Income Holdings Sector type with market value and percentages (suggested categories.)
U.S. Treasury Corporate bonds
Agency discount notes Asset-backed securities
Agency mortgage-backed securities Collateralized Mortgage Obligations
Repurchase agreements Municipal notes
Commercial paper Cash/Other MMFs
Certificates of Deposit Other
Corporate notes Total should equal to 100%Leverage (Please indicate the type of leverage used and the percentage)
Maturity breakdown (%) 5-10 Years
0-1 Years 10-15 Years
1-3 Years 15-25 Years
3-5 Years 25 & OverTotal outstanding debt covered by self liquidity (millions):
Commercial paper Maximum daily and weekly modes
VRDNs Asset to debt coverage
OtherExhibit B